Correlation Between Belden and Onconetix

Can any of the company-specific risk be diversified away by investing in both Belden and Onconetix at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Belden and Onconetix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Belden Inc and Onconetix, you can compare the effects of market volatilities on Belden and Onconetix and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Belden with a short position of Onconetix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belden and Onconetix.

Diversification Opportunities for Belden and Onconetix

0.06

Correlation Coefficient

Belden  Onconetix

Significant diversification

The 3 months correlation between Belden and Onconetix is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Belden Inc and Onconetix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconetix and Belden is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Belden Inc are associated (or correlated) with Onconetix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconetix has no effect on the direction of Belden i.e., Belden and Onconetix go up and down completely randomly.

Pair Corralation between Belden and Onconetix

Considering the 90-day investment horizon Belden is expected to generate 9.73 times less return on investment than Onconetix. But when comparing it to its historical volatility, Belden Inc is 11.25 times less risky than Onconetix. It trades about 0.2 of its potential returns per unit of risk. Onconetix is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Onconetix on October 26, 2024 and sell it today you would earn a total of  13.05  from holding Onconetix or generate 37.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Belden Inc  vs.  Onconetix

Belden Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Belden Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Belden is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Onconetix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Onconetix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Belden and Onconetix

The main advantage of trading using opposite Belden and Onconetix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belden position performs unexpectedly, Onconetix can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Onconetix will offset losses from the drop in Onconetix's long position.

The idea behind Belden Inc and Onconetix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.